Coffee exports in India fell by 5.34% to 2,99,266 tonnes for the crop year ended 30 September 2013, compared to 3,16,164 tonnes in the previous coffee year, according to the Coffee Board of India.

The fall in exports were primarily due to continued economic slowdown worldwide apart from decline in demand from European countries like Italy, Spain, Greece and Portugal.

A decline in Arabica prices by as much as 20-25% also affected coffee exports as most of the farmers had withdrawn their sales.

Between October 2012 and September 2013, the export realisation fell by 1.3% to INR151,379 ($2,418) per tonne, compared to INR149, 459 ($2,387) per tonne in the previous coffee year.

In value terms, total coffee exports declined by 4.1% to INR35,300m ($564m), compared to INR47,250m ($755m) in the previous year, according to Coffee Board.

Coffee produced in India is exported to Italy, Germany, the Russian Federation, Belgium and Spain.

The Coffee Board estimates that production in 2013-14 to be at least 10% lower than post-blossom estimates of 3,47,000 tonnes.

During the 2012-13 season, the country produced 318,200 tonnes of coffee beans.

Coffee Board of India chairman Jawaid Akhtar told Business Standard that based on the conditions that prevailed in February and March the board estimated to achieve production of 3,47,000 tonnes.

"However, due to a drought in the two subsequent months and the heavy rains in June, July and August, we anticipate a drop of about 10% drop, against the post-blossom estimates," Akhtar added.